Paying for a way to quit

August 10, 2006

The fact that Gov. Mitch Daniels is likely to ask the General Assembly to raise Indiana's tax on tobacco is not surprising. The governor's plan to increase the cigarette tax by 25 cents during the last legislative session died only because the legislature was caught up in other controversial issues, such as the lease of the Toll Road. Daniels has said the state's health status would be an issue to address when the new legislative session begins next year. There is reason for concern for Hoosier health. According to the Associated Press, a recent survey of more than 5,600 Hoosiers showed smoking rates had risen from 24.8 percent in 2004 to 27.3 percent last year. That places Indiana second only to Kentucky in percentage of smokers, not the kind of ranking for which Indiana should strive. A Ball State University study found that the Hoosier state actually would be better off without tobacco production or use. Though tobacco growers and bars that cater to smokers may be hurt by less tobacco use, others sectors of the economy would improve through reduced health costs. People would have more money to spend on other things, leading to more economic benefits in other areas. Indiana's tax is now 55.5 cents per pack, the lowest in the Midwest by far, according to Daniels. Though raising the tax may bring Indiana more in line with other Midwestern states, increasing it unduly burdens one class of taxpayer. There is no doubt that smoking carries serious health risks. But it also remains a legal activity for those adults who choose to smoke. We do not believe an increase in the cigarette tax is warranted unless the tax is used to fund health initiatives in the state, especially programs for tobacco use prevention and cessation. Two years ago, there was a drastic funding cut in the program. What had been a significant reduction in smoking was replaced by an increase to the levels now seen in the state. Money from any cigarette tax increase would go a long way to reversing that trend once again.